Electro Scientific Industries, Inc. (ESIO) saw its loss widen to $9.68 million, or $0.30 a share for the quarter ended Oct. 01, 2016. In the previous year period, the company reported a loss of $3.26 million, or $0.10 a share. On the other hand, adjusted net loss for the quarter widened to $7.67 million, or $0.24 a share from a loss of $1.04 million or $0.03 a share, a year ago.
Revenue during the quarter plunged 36.18 percent to $29.66 million from $46.47 million in the previous year period. Gross margin for the quarter contracted 262 basis points over the previous year period to 37.02 percent. Operating margin for the quarter stood at negative 33.32 percent as compared to a negative 6.51 percent for the previous year period.
Operating loss for the quarter was $9.88 million, compared with an operating loss of $3.03 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $7.58 million compared to operating loss of $0.76 million in prior year period.
Michael Burger, president and CEO of ESI, said, :"Our second quarter was challenging for ESI, with short-term overcapacity in our core business resulting in sequentially lower revenues, earnings, and cash flow. The team reacted appropriately to the change in market environment, by controlling operating expenses while keeping focused on our long-term growth initiatives."
For the third-quarter, The company expects diluted loss per share to be in the range of $0.33 to $0.40 . On an adjusted basis, the company expects diluted loss per share to be in the range of $0.25 to $0.30.
Operating cash flow declines
Electro Scientific Industries, Inc. has generated cash of $3.98 million from operating activities during the first half, down 11.52 percent or $0.52 million, when compared with the last year period.
Cash flow from investing activities was $6.50 million for the first half as against cash outgo of $11.80 million in the last year period.
The company has spent $0.14 million cash to carry out financing activities during the first six months as against cash inflow of $0.13 million in the last year period.
Cash and cash equivalents stood at $52.68 million as on Oct. 01, 2016, up 20.72 percent or $9.04 million from $43.64 million on Sep. 26, 2015.
Working capital declines
Electro Scientific Industries, Inc. has witnessed a decline in the working capital over the last year. It stood at $115.53 million as at Oct. 01, 2016, down 5.61 percent or $6.86 million from $122.39 million on Sep. 26, 2015. Current ratio was at 3.77 as on Oct. 01, 2016, up from 3.40 on Sep. 26, 2015.
Cash conversion cycle (CCC) has decreased to 199 days for the quarter from 223 days for the last year period. Days sales outstanding went up to 121 days for the quarter compared with 87 days for the same period last year.
Days inventory outstanding has decreased to 151 days for the quarter compared with 183 days for the previous year period. At the same time, days payable outstanding went up to 73 days for the quarter from 47 for the same period last year.
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